BUA CEMENT PLC FY 2019 and Q12020 Presentation to Investors and - - PowerPoint PPT Presentation

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BUA CEMENT PLC

FY 2019 and Q1’2020 Presentation to Investors and Analysts

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Disclaimer

Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). This presentation contains forward-looking statements and information. Forward-looking statements and information are statements that are not historical facts, related to future, not past, events. They include statements about our believes and expectations and the assumptions underlying them. These statements and information are based on plans, estimates, projections as they are currently available to the management of BUA Cement. Forward-looking statements and information therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. By their very nature, forward-looking statements and information are subject to certain risks and uncertainties. A variety of factors, many of which are beyond BUA Cement’s control, could cause actual results to defer materially from those that may be expressed or implied by such forward-looking statement or information. For BUA Cement particular uncertainties arise, among others, from changes in general economic and business conditions in Nigeria, where we derive a substantial portion of our revenues and hold a substantial portion of our assets; the possibility that prices will decline as result of continued adverse market conditions to a greater extent than currently anticipated by BUA Cement’s management; developments in the financial markets, including fluctuations in interest and exchange rates, commodity and equity prices, financial assets generally; continued volatility and a further deterioration of capital markets; a worsening in the conditions of the credit business and, in particular, possible uncertainties arising out of the financial market and liquidity crises; the outcome of pending investigations and legal proceedings and actions resulting from the findings of these investigations; as well as various other factors. More detailed information about certain of the risk factors affecting BUA Cement is contained throughout this presentation and in BUA Cement’s financial reports, which are available on the BUA Cement website, www.buacement.com. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement or information as expected, anticipated, intended, planned, believed, sought, estimated or projected. In addition to figures prepared in accordance with IFRS, BUA Cement also presents alternative performance measures, including, among others EBITDA, EBITDA margin, free cash flow and net debt. These alternative performance measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with

• IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles, as such, Other companies may define these terms in

different ways.

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01

Our Corporate Philosophy

O U T L I N E

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How We Create Value Amidst Low GDP Per Capita

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Company Overview

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Strategic Milestones

05

Where We Operate

06

Macro-economic Environment (FY2019)

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Financial Highlights

08

EBITDA Evolution

09

EBITDA Assessment

10

Cost Profile

11

Free Cash Flow & Net Debt

13 14 15 16 17 18 19 20 21 22

Faces of Sustainability COVID-19: Business Continuity Assessment Macro-economic Environment (Q1’2020) Financial Highlights EBITDA Assessment Cost Profile 2020 Strategic Priorities Appendix Meet the Board Financials

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Q & A

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Our Vision

To be a highly competitive market leader in Nigeria To produce and market high quality cement for national development

We are a professional and easy to deal with supplier of premium brand of cement that provides reliable ‘doorstep’ delivery to its customers and professional application training to the users of cement

Our Mission Our Value Proposition

Our Philosophy

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Creating Value Amid Low GDP Per Capita

Performance

E2SG Systems

Circular economy Agile & adaptable systems Innovation & technology

People

Training & Development Open communication

Processes

Data base information system

Nigeria & Sub-Saharan Africa (SSA)

Cement Consumption per capita

Nigeria - 109kg SSA – 91kg World - 521kg

Population

214 million

Population Growth Rate

2.53%

Urbanization Rate

4.23%

Housing Deficit

22 million

Infrastructure Deficit

$300 billion

(infrastructure to GDP stock,

• c. 20-25%)

Industrial Activity

22.25%

(2019)

(Q1'2020; 23.65%)

Nigeria Cement Growth Rate

7% (2019)

SSA Industry Growth

5%-6%

(2019)

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Brief Overview

Largest

cement producer in the North-West, South-South and South East

3rd Most Capitalised

company on the Nigerian Stock Exchange (NSE) – N1.2 trillion (Jan. 2020)

>60 per cent

capacity utilization attained

4,501kt (FY2019)

Cement volume dispatched

N175.52 billion (FY2019)

Cement Sales

Particulate Emission

<10/Nm3 (well-below int’l standards)

3 Modern lines

• perational across two States

1 2 3 4 5 6 7 8

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Flawless Execution, Disciplined Approach

Incorporation of CCNN; commences operation in 1967 with an installed capacity of 100,000MT

1962 2015

Commissions its 500,000MT (Line-2), with the decommissioning of Line -1 the following year

2018

Listed on the Nigeria Stock Exchange (NSE), resulting from a partial privatization by the government

2019

FGN divests its majority holding to Scancem International ANS of Norway

2020

Scancem divests its majority holding to Damnaz Cement Company Limited

1985 1993 2000 2008 2010

BUA International Limited acquires Damnaz Cement Company to become majority shareholder and technical partner in CCNN Obu Cement commences

• perations with the

commissioning of its green field 3MMT line at Okpella, Edo State The 1.5MMT line-2 plant at Kalambaina, Sokoto State in commissioned Business combination between CCNN Plc and Kalambaina Cement Company; resulting to an installed capacity of 2MMT Commissions the line-2 3MMT at Okpella, Edo State Completes merger between CCNN Plc and Obu Cement Company Plc; resulting in the emergence of BUA Cement Plc BUA Cement listed on the Nigeria Stock Exchange, to become the 3rd largest company by market capitalization Included in the MSCI frontier index

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Line 1 – 500,000MTPA Line 2 – 1.5 MMTPA Line 3 - 3MMTPA (Q2’2021)

Strategic Positioning, Increasing Market Presence

Kalambaina Plant Sokoto State

FCT

Obu Plant Edo State

Line 1 – 3MMTPA Line 2 – 3MMTPA

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Macro-Environment & Sectoral Drivers (FY2019)

Oil price was up 23% to $66/bbl., resulting from trade disputes, sanctions and geo- political tensions in the middle-east

Construction

2.33 3.18 0.67 2.37 1.81 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 FY2018 Q1 Q2 Q3 FY2019 %

Source: Bloomberg, NBS

Real Estate

• 4.74

0.93

• 3.84
• 2.31
• 2.36
• 5.00
• 4.00
• 3.00
• 2.00
• 1.00

0.00 1.00 FY2018 Q1 Q2 Q3 FY2019 %

23%

GDP growth up 2.27% (2019) from 1.91% (2018), resulting from increased contribution from oil related activities

2.27%

Naira appreciates by 0.50% to N362.84/$; a result of a stable economic environment and increased dollar liquidity

0.05%

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OBU CEMENT COMPLEX (LINES 1 & 2)

Okpella, Edo State

(South-South Nigeria)

Production Capacity Line 1 – 3mmtpa Line 2 – 3mmtpa Completion Date 2015

Obu Cement Line 1

2019

Obu Cement Line 2

Location

OBU CEMENT PLANTS

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Financial Highlights (FY 2019)

1 Market share computed based on Nigerian market only, increased from 13% (2018) to 20% (2019) 2 Leverage is calculated total asset divided by total equity

… our focus on value continues to sustain performance

N’000 except otherwise stated

FY2019 FY2018 %Δ

Cement production (kt)1 4,501 2,901 55.2 Revenue 175,518,326 119,012,572 47.5 EBITDA margin (%) 47.0 47.0

• EBIT

71,428,017 42,841,765 66.7 EBIT margin (%) 40.7 36.0

• Net Finance cost

(5,192,054) (3,675,183) 41.3 Profit before Tax (PBT) 66,235,964 39,166,582 69.1 Profit after Tax (PAT) 60,610,286 64,072,002 (5.40) Free cash flow 3,204,663 (5,400,366) 159.3

Net debt

(5,836,840) (1,122,667) 420

Equity multiplier (leverage)2

1.29x 1.58x

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EBITDA Evolution

(Δ;y/y)

Comments

• Gross profit was up +37.51% or N22.49 billion from increased production volumes; though moderated by energy cost from higher gas pricing,

increased raw materials usage and changes to energy mix

• Selling, distribution and administration (net) increased by 34.3% or N3.73 billion, which arose from the enlarged entity
• Depreciation charges was up 113.78% or N7.52 billion due to the capitalization of Obu line II and the resultant merger
• Given these movements, EBITDA balance increased from N55.70 billion in 2018 to N81.99 billion in 2019: an increase of 47.19%.

55,700 22,490 (3,726) 7,521 81,985

(30,000) 30,000 60,000 90,000

EBITDA (2018) Gross Profit SD&A Depreciation EBITDA (2019) N’millions

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Resilient performance in a challenging economic environment

EBITDA Margin EBITDA (N’mn) …business model aided by discipline of focus and strategy execution EBITDA per ton (‘000) Comments

• EBITDA rises by 47.2% from N55.7 billion (2018) to N82.0 billion (2019) due to increased operational activity
• EBITDA margin was flat during the period at 47.0%. Underlining the flat trend was price discounts offered along with an increasing push to ‘new

markets; in-line with our distribution strategy

• Similarly, EBITDA per ton declined during the period

1 2 3

55,699 81,985 2018 2019 46.80% 46.70% 2018 2019 18.95 18.21 2018 2019

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Balancing Cost Efficiencies with Investments in Route-to- Market Strategy

Comments

• Despite the inflationary environment, driving cost efficiencies remains pivotal to our growth strategy. Consequently, cost of sales/ton rose by

2.9% from N20, 088/ton in 2018 to N20,678/ton, as at 2019; due to enhance capacity

• During the review period we recorded higher energy pricing alongside slight changes to energy mix. This resulted in a 14.7% increase in total

energy cost per ton to N8,063/ton in 2019 from N7,030/ton

• Distribution cost was up (+27.2%) to N2,631/ton (2018; N2,068/ton), in support of our expansionary drive to “new markets”

Cost of sales per ton (N‘000)

20.09 20.68 2018 2019

• Dist. & sell. cost per ton (N‘000)

2.07 2.63 2018 2019 7.03 8.06 2018 2019

Energy cost per ton (N‘000)

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Free Cash Flow & Net Debt Evolution

• Free cashflow recorded a revision from (N5.40 billion) in 2018 to N3.20 billion in 2019, driven by an increase in net cashflow from operations; which was up

by (+68.98%; y/y) to N26.46 billion in 2019

• Net debt increased from N1.18 billion in 2018 to N5.84 billion in 2019, arising from the following:
• Net cashflow from operations was up (+68.98%; y/y) to N26.46 billion in 2019
• Net borrowing increased by N17.39 billion to finance capital expenditure and working capital requirements.
• Conversely, we recorded a lower debt ratio, with our equity multiplier declining from 1.58x in 2018 to 1.29x, as at 2019; due to an increase shareholders’ fund

(1)

66 16

(54)

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(23)

10 16

(21) (6) (60) (40) (20) 20 40 60 80 1 N’BN

Net debt Profit before tax Adjustment for non-cash items Adjustment for working capital items Net cash flow from operations Investing activities Financing activities Cash and cash balances Debt balance Net debt

Comments

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Faces of our Sustainability Footprint

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COVID-19 – Risk Identification & Mitigants

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03

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Governance

Our business continuity plan seeks to improve the company's resilience, safeguard operations, identify potential weak links in the supply chain and deliver effective responses to these identified risks. During the quarter, we established a COVID-19 incidence team to ensure the timely assessment, communication and coordination of incidences and

• responses. The team reports to the MD/CEO

Distribution/supply chain

Local sourcing of materials and partnerships remains a focal point in 'how we create value' , 'how we become more socially responsible‘ and more so, how to mitigate large fall-outs from supply chain disruptions. Furthermore, through stockpiling of raw materials, we ensure continued production. Our service oriented approach ensures reduced impact of cement delivery to customers.

Liquidity

Scenario planning and stress tests have been undertaken to ensure appropriate contingencies are undertaken. This is combined with appropriate cost controls, particularly in the area of discretionary spending and the postponement of non-critical expenditures.

Health & Safety

The safety and health of our workers is always a priority. Given the

• utbreak of the COVID-19 strain, health and safety measures were

heightened, thereby enforcing the compulsory wearing of protective masks, the restriction of customers and third-parties to sites and office premises, the mandatory isolation of staff who travel while initiating flexible work schedules and remote working.

Community

Through our constant interactions with host communities, we are well- positioned to understand some of their concerns, particularly with the

• utbreak of COVID-19. As part of measures to mitigate its impact, food

and healthcare supplies were provided while also undertaking community advocacy for the practice of social distancing.

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Macro-Environment & Sectoral Drivers (Q1’2020)

0.93

• 3.84
• 2.31
• 2.36
• 4.75
• 5.00
• 4.00
• 3.00
• 2.00
• 1.00

0.00 1.00

Q1 2019 Q2 2019 Q3 2019 FY2019 Q1 2020

% 3.18 0.67 2.37 1.81 1.69 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

Q1 2019 Q2 2019 Q3 2019 FY2019 Q1 2020

% Oil price was down 66% to $22.74/bbl., resulting from an over supplied oil market, warped by the coronavirus outbreak

65.55%

GDP growth decelerated to 1.87% (Q1’20) from 2.10% (Q1’19), with increased contribution from oil related activities

1.87%

Naira depreciated by 6.26% to N385.55/$; a result of the coronavirus outbreak

6.26%

Construction Real Estate

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Financial Highlights – Q1’2020

1 Market share computed based on Nigerian market only at 20% (Q1’2020) 2 Leverage is calculated total asset divided by total equity

N’000 except otherwise stated

Q1’2020 Q1’2019 %Δ

Cement production (kt)1 1,328 1,107 20.0 Revenue 53,969,025 43,133,632 25.1 EBITDA margin (%) 45.6 48.9 (3.3) EBIT 24,625,484 21,095,885 16.7 EBIT margin (%) 38.9 42.1 (3.2) Net Finance cost (854,833) (765,916) 11.6 Profit before Tax (PBT) 20,129,343 17,393,972 15.7 Profit after Tax (PAT) 17,789,690 15,682,466 26.2 Free cash flow (3,900,637) 13,515,530 (128.8) Net Debt 10,603,504 5,836,840 81.7

Equity multiplier (leverage)2

1.27x 1.29x

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EBITDA Evolution

(Δ;y/y)

• Gross profit increased by N3.44 billion from N21.05 billion in Q1’2019 to N24.49 billion, as at Q1’2020; arising from increased production volumes
• Selling, distribution and administration (net) increased by 21.3% to N0.62 billion; driven by the continued investment in our route-to-market strategy
• Depreciation charges were up 24.0% to N3.64 billion, an increase of N0.71 billion during the quarter due to the capitalization of OBU line II
• EBITDA increased from N21.10 billion in Q1’2019 to N24.63 billion, as at Q1’2020

21,095 3,439 (615) 705 24,625

• 5,000

5,000 10,000 15,000 20,000 25,000 30,000 EBITDA (Q1'2019) Gross profit SD&A Depreciation EBITDA (Q1'2020)

N’millions

Comments

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Increased Operations ; Growing Market Acceptance

EBITDA Margin EBITDA (N’mn) EBITDA per ton (‘000)

• EBITDA balance for the review period rose by 16.7% from N21.10 billion in Q1’2019 to N24.63billion, as at Q1’2020. Driving the increase was

additional capacity at OBU which was fully operational in the quarter, as against 2019

• EBITDA margin declined by 3% points to 45.6% (Q1’2019; 48.9%), due to continued push to new markets along with the depreciation charge
• Equally, EBITDA per ton declined by 3.1% (N526/ton) though moderated by an increase in cement price during the quarter.

48.91% 45.63%

Q1'2019 Q1'2020

21,096 24,625

Q1'2019 Q1'2020

19.1 18.5

Q1'2019 Q1'2020

Comments

1 2 3

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• During the period, cost of sales increased 11% to N22,188/ton, arising from energy mix and rising cost of some raw materials
• Energy cost per ton was impacted by increase in gas pricing and changes to energy mix.
• Distribution and selling cost/ ton was up marginally by 0.27% (N6.75/ton) moderated by declines in marketing expense.

20.0 22.2

Q1'2019 Q1'2020

Consolidation on Enhanced Capacity

Comments

Cost of sales per ton (N‘000)

2.53 2.54

Q1'2019 Q1'2020

• Dist. & sell. cost per ton (N‘000)

Energy cost per ton (N‘000)

7.8 8.0 Q1'2019 Q1'2020

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BUA CEMENT COMPLEX, SOKOTO

Kalambaina, Sokoto

(North-West Nigeria) Production Capacity Line 1– 500,000mtpa Line 2– 1.5mmtpa New Line 3– 3mmtpa Completion Date 1985 2018 Mid-2021 Line-1 Line-2 Line-3 Location

82MW

Captive Power plant

High Capacity

Coal mill, multi-fuel Cement plant

BUA CEMENT PLANT, SOKOTO

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Strategic Priorities in 2020

Driving added merger synergies Further enshrine already identified sustainable goals Growing foothold in ‘new markets’ whilst consolidating

• n existing ones

Commission the Sokoto line-3 plant

01 02 03

04

Synergy New markets Expansion Sustainability

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Board of Directors

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Billionaire industrialist and philanthropist, Abdul Samad Rabiu, is the Executive Chairman/CEO of BUA Group – a company he founded in 1988 and has become one of Nigeria's largest privately

• wned foods and infrastructure conglomerate with

diversified investments spanning key business sectors of the Nigerian economy. Under Abdul Samad's astute leadership, BUA has grown steadily over the years to entrench itself as a leading player with holdings in cement, sugar, rice, flour milling and pasta (though both recently divested in January 2016), edible oils, logistics, agriculture, fertilizer production, steel and real

• estate. With a firmly established reputation for

innovation, BUA Group is

• ne
• f

the largest contributors to Nigeria's GDP and among its largest employers of labour.

ABDULSAMAD RABIU

Chairman

Board of Directors

Chimaobi Madukwe is the Group Chief Operating

• Officer. He holds a Master's degree in Business

Administration from ESUTH Business School and a Bachelor's Degree in Management Studies (Accountancy) from University of Jos. Before joining BUA Group in 2004, He was Head of Corporate Finance in the Citizens International Bank Plc where he worked from 1999 to 2004. He also worked as a consultant at PBTG Consulting between January and June 1999. He sits

• n the board of BUA International Limited, BUA

Sugar Refinery Limited and Cement Company of Northern Nigeria Plc.

CHIMAOBI MADUKWE

Director With about 15years of management experience in the commodities sector and working in large conglomerates, Kabiru Rabiu is the Group Executive Director for BUA Group – one of Nigeria's largest foods, mining and infrastructure conglomerates. Prior to his appointment as Group Executive Director, BUA Group, Kabiru held various management positions at Nigeria Oil Mills where he left as General Manager in November 2008 to become the Managing Director at the newly incorporated BUA Oil Mills – a position he held until his appointment as Group Executive Director, BUA Group in 2010. With an MBA in International Business from the American Intercontinental University, UK; Kabiru also holds a Bachelor's degree in Management from Webster University, London. Kabiru Rabiu has attended various courses on Corporate Strategy, Finance, M&A, Risk Management, etc at top schools across the world including the prestigious Harvard Business School and The London School of Economics and Political Science.

KABIRU RABIU

Director Finn holds a Master Degree in Combustion Engineering from NTH, Norway in 1977. His entire working career has been in the Cement Industry and mainly within the Africa Continent. He started in 1985 in Ghana as the Work Manager for Heidelberg Cement (Scancem International Ltd.) and continued the next 25 years in various managerial positions within the Cement Group. He was member of the Executive Management in Heidelberg Cement Africa for 10 years as Senior Vice President, responsible for West Africa and Southern Africa. He was also Chairman and member of several Boards across the continent, also including Ghana Cement Works Ltd., Nova Cimangola SA, and Tanzania Portland Cement Ltd. (Chairman). Finn joined the BUA Group in 2009 as the Commercial Director and as Executive Board member in Cement Company of Northern Nigeria Plc. Furthermore, he was appointed Managing Director for Edo Cement Ltd in 2012 and Group Chief Operating Officer, Cement in 2017.

FINN ARNOLDSEN

Director

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Engr Yusuf Haliru Binji the Managing Director of BUA Cement is a Chemical Engineer with degrees from Ahmadu Bello University and the University College, London. Engr Yusuf Binji is a Fellow of the Nigerian Society of Engineers, the Solar Energy Society of Nigeria and the Nigerian Society of Chemical Engineers. He started his career in the cement industry with CCNN working across various departments before he rose through the ranks to become an Executive Director, Technical. He later joined BUA where he held various positions as Executive Director, Cement Projects/Technical within the Group from 2013 to 2014 and Executive Director, Technical, BUA Obu Cement Company from 2014 to 2017. He was Managing Director, Obu Cement Company in 2017 before moving to Cement Company of Northern Nigeria as the Managing Director in 2018. In 2020, he was announced as the MD/Chief Executive of BUA Cement, the new entity from the merger of Obu Cement and CCNN.

• ENGR. YUSUF BINJI

MD/CEO

Board of Directors

Senator Khairat Abdulrazaq- Gwadabe, a Nigerian, is a Barrister-at-Law and a Solicitor of the Supreme Court of Nigeria and the Managing partner of A. Abdulrazaq & Co, a rm of Legal Practitioners and Notaries Public. She obtained a B.A in European Studies and Spanish from the University of Wolver Hampton England (1982) and Universidad Complutense in Madrid, Spain (1981). She holds an LL.B from the University of Buckingham in England (1984) and was called to the Nigerian Bar in 1986. She later obtained a Master’s Degree in Law (LL.M) from the University of Lagos, Nigeria in 1992. Senator Abdulrazaq-Gwadabe worked with the then Mobil Producing Nigeria as a Counsel in the Legal Department handling matters ranging from compensation matters resulting from oil spillage to internal legal advice on various issues to the

• company. In the 1999 general elections, she was

elected as the rst female Senator from Northern Nigeria and the only Senator representing Abuja, the Federal Capital Territory (FCT). While in the Senate, she chaired the Committees on Women Affairs and Youth Development; The Federal Capital Territory, and Primary Health and HIV/Aids

• Committees. Senator Khairat Abdul-razaq Gwadabe

was elected as chairman of the Senators Forum in 2011, which she still holds to date. In 2013, she was appointed as a member of the Presidential Advisory Committee

• n

National Dialogue, which recommended guidelines and procedure for holding the National Conference. Senator Khairat was appointed as an Independent Director on the Board of CCNN PLC on July 12, 2018.

KHAIRAT A. GWADABE

Independent Non-Executive Director Shehu Abubakar, a Nigerian was born in August 28,

• 1959. He holds a B.Sc. (Business Management) from

Usman Danfodio University, Sokoto in 1984 and an MBA from Ahmadu Bello University, Zaria in 2011. Alhaji Abubakar had an extensive working career in the Banking Industry from 1987 to 2017 where he retired as Executive Director of Keystone Bank Limited after putting in about 29 years in the

• Industry. He was also at different times a Director
• n the Boards Global Bank of Liberia and KBL

Health Care Limited. Alhaji Shehu Abubakar has attended many courses in the course of his career within and outside Nigeria at the Lagos Business School, Harvard Business School, Columbia Business School and Wharton Business School among others. Alhaji Abubakar has a wide range of experience in Strategy, Leadership and Executive Management, Customer Relations and Management and Corporate Finance among other

• things. Alhaji Shehu Abubakar was appointed as an

Independent Director on the Board of CCNN PLC

• n July 12, 2018.

SHEHU ABUBAKAR

Independent Non-Executive Director

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Financials Summary

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Financials – Income Statement

Figures in N’000

Dec 2019 Dec 2018

Revenue 175,518,326 119,012,572 Cost of sales (93,075,293) (59,060,016) Gross profit 82,443,033 59,952,556 Administrative expenses (10,516,380) (12,522,190) Distribution & selling expenses (11,844,,509) (6,080,823) Impairment write back/(charge) 3,758,227 (2,461,159) Other income 7,587,647 3,953,381 Operating profit 71,428,017 42,841,765 Finance income 157,002 75,060 Finance cost (5,349,056) (3,750,243) Net finance cost (5,192,054) (3,675,183) Profit before tax 66,235,964 39,166,582 Income tax (charge)/credit (5,625,678) 24,905,420 Profit after tax 60,610,286 64,072,002

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Financials – Balance Sheet

Figures in N’000

Dec-2019 Dec-2018

Property, plant & equipment 393,406,271 387,435,399 Right-of-use-asset 76,503

• Intangible assets

2,781,915 1,023,489 Deferred tax 12,140,877 10,972,246 Non-current assets 408,405,566 399,431,134 Inventories 27,201,580 20,933,199 Due from related parties 16,753,851 62,361,281 Trade and other receivables 2,618,935 2,433,576 Cash and cash equivalents 15,586,664 2,815,101 Current assets 62,161,030 88,543,157 Total asset 470,566,596 487,974,291 Bank overdraft 562,066 102,050 Trade and other payables 36,341,858 34,286,926 Contract liabilities 32,686,945 7,936,831 Due to related parties 918,741 124,074,794 Current income tax liabilities 813,724 2,257,725 Short-term borrowings 20,861,438 3,717,431 Lease liabilities 41,677

• Deferred income

5,701 26.,287 Provision for decommissioning liabilities 4,047,713 3,346,240 Current liabilities 96,461,863 175,748,284

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Figures in N’000

Dec-2019 Dec-2018

Lease liabilities 6,675

• Long-term borrowings obligations
• 76,077

Employee benefit obligations 2,908,526 2,201,781 Deferred tax liabilities 7,492,289 1,288,054 Deferred income

• 47,911

Non-current liabilities 10,407,490 3,613,823 Total liabilities 106,869,353 179,362,107 Ordinary share capital 16,932,177 16,912,177 Retained earnings 146,833,,788 91,480,902 Reorganisation reserve 200,004,179 200,024,179 Reserve on actuarial valuation of defined benefit plan (72,902) 192,926 Equity attributable to shareholders 363,697,242 308,612,184 Total equity and liabilities 470,566,596 487,974,291

Financials – Balance Sheet (contd.)

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Thank You

www.buacement.com

5th Floor, BUA Towers PC 32, Churchgate Street Victoria Island, Lagos, Nigeria Email: investor.relations@buacement.com